A Fixed-rate mortgage is a mortgage with a fixed interest rate. There are typically two options for fixed-rate mortgages, a 30 year and a 15 year. In most cases, you may get a lower rate for a 15-year loan, and while you will pay off your mortgage in just 15 years, your monthly payment will be higher. A majority of buyers opt for the 30 year fixed rate loan, as it spreads your loan payments out of 30 years resulting in a lower monthly payment. With a fixed-rate loan, your interest rate will never change, unless you refinance or restructure the loan in any way.
An adjustable-rate mortgage is a mortgage with an interest rate that is fixed for a designated amount of time and then will vary depending on the market. This means your mortgage payment can be higher or lower during the adjustable phase and is not one constant number. The most common form of an adjustable-rate mortgage is a 5/1 ARM which is a loan program that keeps your mortgage rate fixed for 5 years, and then moves to an adjustable-rate mortgage. The benefits of adjustable-rate mortgages are that you may have a lower interest rate in the beginning, and mortgage payments may be lower during the first 5 years.
The benefits of homeownership reach far and wide. Not only are there financial benefits to owning a home but there are emotional, social, and societal benefits as well! Take a look at all homeownership has to offer. Also, keep in mind that we can help finance your dreams with some programs requiring as low as a 3% down**
Let’s look at some common myths we see in regard to purchasing a home.
There are a multitude of programs that could work for your home purchase. Depending on your scenario you may be eligible for a variety of down payment options: